Questions and Answers for
saving money on Transportation

With
a soft economy and an uncertain stock market, more and more people are
keeping an eye on spending and they are interested in getting more for
their money. Kyle Busch has over a quarter-century of experience saving
money on transportation. He answers ten commonly asked questions about
purchasing vehicles and saving money.

(Q)
Why does it make sense to consider buying used vehicles?

(A) Transportation is a
depreciating asset that loses value, especially during the first three
years of ownership. Buying a 2- to 3- year-old used vehicle will
provide about a one-third reduction in the cost. Additionally, the
initial owner will have "test driven" the vehicle for the second owner.

(Q) What is a common
error than many people make when buying transportation?

(A) A common error when
buying transportation involves buyers not thoroughly identifying their
transportation needs and then purchasing a vehicle that does not
entirely meet those needs. For example, a buyer might choose a mid-size
family sedan that satisfies many of his or her needs. However, six
months after the purchase, the buyer realizes that another vehicle in
the same category provides a softer ride, better fuel economy, etc. and
would have better satisfied his or her driving needs.

(Q) After identifying
transportation needs, what should buyers do next?

(A) It is worthwhile to
visit a local public library to research which vehicle(s) will indeed
satisfy specific transportation needs and then identify those that have
good reliability ratings.

(Q) Is it best to buy a
vehicle from a specific source?

(A) Each transportation
source has certain advantages and disadvantages. However, the important
thing to keep in mind is that a number of vehicle sources should be
considered (i.e., private owners, rental car companies, company
vehicles, off lease vehicles, new car dealerships, bank repossessions,
the Internet). When buyers inform a vehicle source that they are also
considering the other sources, better deals are usually obtained.

(Q) What questions
should buyers ask by telephone to better determine if a vehicle is
worth their time to investigate?

(A) - How many miles
has the vehicle been driven (the average is about 11,000 to 12,000
miles per year)?

- Is the transmission an
automatic, a semi-automatic, or a manual? If the transmission is not
what the buyer wants, there is no need to ask further questions.

- Has the vehicle been repainted
and if so, why? It is best to avoid repainted vehicles.

- When are the next state
inspection and emissions standard test due? The vehicle should have a
minimum of at least eight months remaining until the next required
state inspection and emissions test.

- How often were the engine oil
and the oil filter changed, and who performed the service? An
acceptable answer would be every 3,000 to 3,500 miles or about every
three to four months.

- Are you the original owner of
the vehicle? Original owners tend to take better care of vehicles.

- What is the reason that the
vehicle is being sold? It is encouraging if the individual is the
original owner and if he or she is planning to again buy the same make
of vehicle.

(Q) What if the owner
is lying when answering questions about a vehicle?

(A) It is worthwhile to
obtain as much information about a vehicle as possible, therefore,
buyers should ask questions. The interior and exterior inspections, and
vehicle test-drive help to verify the information provided by the
owner.

(Q) How long should the
vehicle test-drive take?

(A) It is worthwhile to
test-drive a vehicle for a minimum of 20 minutes on two separate
occasions. The test-drive should include a variety of roads that buyers
will drive day-in and day-out.

(Q) Should buyers take
a vehicle to a mechanic before making a purchase?

(A) A mechanic should
confirm what buyers have concluded after they have inspected and
test-driven a vehicle. Buyers should request that the vehicle be raised
on a lift for the mechanic's inspection and that the mechanic
test-drives the vehicle.

(Q) Of course buyers
what to save money, but what protection do they have when purchasing a
2- to 3- year-old vehicle?

(A) Most vehicles have
manufacturers' bumper-to-bumper warranties of three years-36,000 miles
or four years-50,000 miles in addition to five years-60,000 miles on
the drive train (i.e., engine and transmission). The warranties are
transferable to buyers who purchase the vehicles used. The warranties
begin on the date that vehicles are first purchased from new car
dealers. Thus, it is important to determine the date when a vehicle was
initially purchased.

Buyers best interests are also served when they have
performed research to identify vehicles that have favorable reliability
ratings.

(Q) What is a long term
benefit of saving one-third when buying vehicles?

(A) The average new vehicle costs
about $15,000 to $18,000. Most 2- to 3- year-old vehicles will easily
provide five or more years of trouble free driving. If buyers invest
the savings (i.e., $5,000 to $6,000) and they are able to add $800 per
year toward transportation, after a five-year period, they will have
the money needed to purchase another 2- to 3- year-old vehicle without
straining their budget.

Kyle Busch is the author of "Drive the Best for the
Price: How to Buy a Used Automobile, Sport-Utility Vehicle, or Minivan
and Save Money."